Chinese Clothes Rush To Sell Assets And Cash Withdrawal Leads To Overall Losses.

12 and 28, Chinese clothing (000902) announced the announcement of the Shunde China clothing listing pfer. As at December 23, 2011, the company had received 54 million 554 thousand and 570 of the total pfer price paid by the Hongkong Industrial Corporation, and the registration and registration procedures for industrial and commercial shares in Shunde have also been completed.

Chinese clothing says asset appraisal value is preliminary.

Yesterday, the Securities Daily telephoned the Chinese clothing company and the Securities Division to tell reporters that the auction of Shunde's equity service is for the purpose of integration.

"Some of the less profitable companies will be auctioned off."

Two months to complete the pfer of listing

Buyers and sellers are tacit understanding.

"Securities Daily" reporter found that the auction of Chinese clothing in Shunde has obvious traces of the procedure.

As the acquirer Hongda Industry is a subsidiary company of China Hi-Tech Group Corporation, China apparel control shareholder.

In October 27, 2011, 70% of the shares of Chinese clothing control company, Foshan Shunde District Zhongfu textile printing and dyeing Co., Ltd. (hereinafter referred to as "Shunde Zhongfu") were officially listed on the Beijing property exchange, and the paction price of the pfer was not less than 54 million 554 thousand and 570 yuan.

Then, in November 3, 2011, Chinese clothing received a letter from Hongda Industry that he was interested in taking part in the acquisition of Shunde's Chinese clothing stock.

6 days later, Chinese clothing announced the convening of the fifth provisional shareholders' meeting. In November 24th, it passed a motion agreeing to participate in the acquisition by Hongda Industry.

There were few shareholders voting at the shareholders' meeting.

A total of 66 shareholders and shareholder agents representing the shareholders' meeting and voting on the Internet represent 14784852 shares, accounting for 5.7306% of the total number of voting shares.

Among them, only 2 Shareholders and shareholder agents representing the 5242767 shares are represented at the shareholders' meeting.

After the motion was passed on 24, Hongda Industry could not wait to buy the shares of Shunde's Chinese clothing on the second day, that is, 25 days, and became the final pferee, the paction price was 54 million 554 thousand and 570 yuan.

As of December 23, 2011, Chinese clothing finally received the total pfer price of 54 million 554 thousand and 570 yuan by the end of this year.

Chinese clothing sells equity for financing

Auction revenue is expected to be 1 million 420 thousand yuan.

In the notice of assignment, Chinese clothing said that in order to optimize the assets structure of the company and open up new businesses, it would sell shares in Shunde.

Caixing International Co., Ltd. has the remaining 30% stake in Shunde Zhongyi company, which has abandoned the exercise of preemption for the pfer.

CIC consultant light industry researcher Zhu Qinghua told the Securities Daily reporter that China's clothing auction equity or tightened the current capital chain requires cash flow to invest in the new production cycle.

When reporters interviewed Chinese costumes yesterday, the company's Securities Department said that the company's auction of Shunde's Chinese clothing equity is also considered for company integration.

"Some of the less profitable companies will be auctioned off."

According to the introduction, Shunde Zhongfu achieved 160 million yuan of business income in 2010 and a net profit of 2 million 710 thousand yuan. As of August 31st, the monthly report showed that the company achieved a net profit of 201 thousand and 700 yuan.

On the basis of May 31, 2011, the net value of Shunde's Chinese clothing net assets was 69 million 462 thousand and 500 yuan, the assessed value was 77 million 935 thousand and 100 yuan, the added value was 8 million 472 thousand and 600 yuan, and the appreciation rate was 12.20%.

Chinese clothing claims that the initial value of the asset valuation is expected to generate 1 million 420 thousand yuan in the pfer of equity.

This income is far from enough for Chinese clothing, because the company lost 12 million 859 thousand and 500 yuan in the first three quarters. If the company's fourth quarter profits are not reversed, the company will again face the danger of losing money.

Losses in the first three quarters of 12 million 859 thousand and 500 yuan

The gross profit margin of the main industry is only 7.53%.

In the 2008 consecutive and two consecutive years of loss in 2009 and the realization of profits in 2010, Chinese apparel succeeded in attracting stars in April 2011.

However, the performance of the company since 2011 has not been reversed.

In the first three quarters of this year, China's clothing net profit was 12 million 859 thousand and 500 yuan.

Zhu Qinghua, a light industry researcher at CIC, believes that the company's profit decline is mainly due to the impact of the current raw materials, labor costs, RMB appreciation and other factors, resulting in increased cost, while foreign consumer market is affected by the impact of the debt crisis in Europe and the United States. The domestic tightening of the direction of the macro policy, to a certain extent, inhibit the growth of terminal consumption, coupled with the expansion of new trade businesses, resulting in increased costs, resulting in reduced profits and overall loss.

When the reporter looked up the 2010 annual report of Chinese clothing, the company found that the main business of the company was low in gross interest rate.

Among them, the gross profit margin of the largest import and export trade of the company's main business is only 5.04%, while that of textile printing and dyeing is 7.53%, while garment processing is even at a loss, with a gross margin of 62.12%.

With the auction of Chinese clothing in Shunde, the textile and dyeing business of the company is less and less, and its proportion gradually decreases.

At present, only 5.04% of the gross margin is imported and exported.

At present, the goal of our clothing companies is to increase the added value of their products and strive for bargaining power to raise the gross profit margin of the products.

And how to create new business with high added value will be a pressing problem for Chinese clothing.

According to the above securities department personage introduction, the new project that Chinese clothing is built this year is the Chinese fashion media.

It is understood that the project will invest 50 million yuan.

Whether this project can become a new profit growth point of Chinese clothing remains to be tested by time.

Low cost extrusion in Southeast Asia

Shrinkage of Chinese clothing orders

Chinese clothing is a listed company based on export trade, but with the low cost squeezing in Southeast Asia, the company's export pressure is also increasing.

Zhu Qinghua, a light industry researcher at CIC, believes that from overseas factors, the global economic slowdown and the lack of demand pull in Europe and the United States have caused the shrinkage of overseas orders of Chinese clothing to a certain extent. From domestic factors, the increase in production costs and appreciation of the renminbi and other factors have led to the rise of the products and the weakening of the price advantage. Therefore, most of the middle and low export orders have been pferred to Southeast Asian countries such as Vietnam, Bangladesh and Indonesia, while the top grade garments are purchased from Europe and the United States.

According to China Textile Economic Net, as India's second largest industry to create jobs, India's clothing industry now provides employment opportunities for some 7 million Indians.

US demand growth supports India's clothing exports.

In June 2011, India's clothing exports increased by 42% over the same period last year, double the increase in February of the same year.

Previously, in order to change the unfavorable situation of over reliance on traditional import and export business in the past, Chinese clothing changed the previously established "Sino spinning joint import and export Limited by Share Ltd" to "China spinning Abt Associates Inc" to reduce the limitations of the single industry, set up a new corporate image and market positioning, and at the same time, the registered capital of the company increased to 100 million yuan.

According to the people of China's clothing and securities department, the company will invest in new trade varieties and regions, but there are no new projects yet.

Zhu Qinghua, a light industry researcher at CIC, told reporters: "as a listed company, enterprises not only have strong brand influence, but also have certain financing channels, which will be conducive to the development of the next stage, and the expansion of enterprises' new trade businesses and their efforts to put into production and design links. There is still potential for development. However, from its current performance and the overall macro situation, it is unlikely that the deficit will be profitable in the short term."

Chinese clothing claims that the initial value of the assets valuation value is expected to yield 1 million 420 thousand yuan in the pfer of Shunde's Chinese clothing shares, while the company has lost 12 million 859 thousand and 500 yuan in the first three quarters.